Knight Frank Luxury Investment Index continues to climb

Continued growth in the value of classic cars helped to push the Knight Frank Luxury Index up by a further 7% in the 12 months to the end of Q2 2013.

The index, which was launched in The Wealth Report 2013 and tracks the value of nine luxury collectable assets, has increased in value by 174% over the past 10 years.

This compares to 135% for prime central London houses and just 55% for the FTSE 100 index.

Gold rose by 273% over the same period, but more recently has seen its lustre fade. Prices fell 23% in the year to June.

Classic cars, by comparison, continue to race ahead with the HAGI index of the most valuable cars up 28% over 12 months and a staggering 430% over the decade.

The table below shows how each asset in the index has performed, as well as more mainstream asset classes.

KFLII clearly illustrates the growing popularity among HNWIs for investing in tangible objects that can also be enjoyed or treasured by their owners.

However, it is worth bearing in mind that their value can go down as well as up. Although the Liv-ex 100 index of investment grade wines has outperformed the FTSE 100 over 10 years, its performance has been even more volatile – second only to art.

Download the full report for the full index and volatility rankings.

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  6. Tracy levett

    #

    Very informative.

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